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Lerok [7]
3 years ago
6

Manson Industries incurs unit costs of $7 ($5 variable and $2 fixed) in making an assembly part for its finished product. A supp

lier offers to make 14,700 of the assembly part at $6 per unit. If the offer is accepted, Manson will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Manson will realize by buying t
Business
1 answer:
sergiy2304 [10]3 years ago
4 0

Answer:

Manson Industries

The total cost savings that Manson will realize by buying the assembly part instead of making it is:

($14,700), showing that more costs will be incurred.

Explanation:

a) Data and Calculations:

                                   Make       Buy

Variable cost per unit   $5            $6

Fixed cost per unit          2              2

Total cost per unit        $7            $8

Total units required 14,700       14,700

Total costs           $102,900   $117,600

Cost saving = ($14,700)

b) Based on the above calculations, it benefits Manson more to produce the part internally than to buy from an outside supplier.  There is a cost difference of $1 because the fixed costs will still be incurred whatever decision is taken.

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A ________ is an agricultural based community in which a number of families live in close proximity to each other, with fields s
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3 years ago
The process of when a product is recycled back into almost the same product, is called?
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3 years ago
Steve goes to Tri-State University and pays $40,000 in tuition. Steve works to pay for his schooling and has an AGI of $37,000.
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His American Opportunity tax credit is $2,500.

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A taxpayer who has a modified adjusted gross income of $80,000 or less can claim the credit for the qualified expenses of an eligible student.

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6 0
3 years ago
Barton and Fallows form a partnership by combining the assets of their separate businesses. Barton contributes accounts receivab
Zigmanuir [339]

Answer:

(a) Barton's investment

Date   Account Titles and Explanation               Debit       Credit

          Accounts receivables                              $44,900

          ($48,000 - $3,100)

          Equipment                                                 $90,000

                 Allowances for uncollectible                               $1,300

                 Barton Capital                                                       $133,600

           (To record Barton's contribution)

(b) Fallows' investment

Date   Account Titles and Explanation               Debit       Credit

          Cash                                                           $28,700

          Merchandise Inventory                             $60,500

                  Fallow Capital                                                      $89,200

           (To record Fallow's contribution)

3 0
3 years ago
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